AS BALTIKA                    Announcement                      04.02.2005



December 2005 sales results



Baltika's December unaudited consolidated net sales totalled 49.61 million EEK

(3,17 m EUR), a 10% increase on the same period last year. Retail trade increased

by 13% to 43.73 million EEK (2,8 m EUR), with a percentage net turnover of 88%.



The unaudited consolidated net sales for 2004 reached 584.97 million EEK (37,4 m

EUR), an increase of 18% when compared with 2003. In all, retail trade amounted

to 422.16 million EEK (27 m EUR), a growth of 31.5% on the previous year.



Sales in the week following Christmas were stronger than anticipated, especially

in Ukraine, Poland, and Lithuania. The conclusion of the lengthy presidential

campaign had a positive influence in Ukraine. Partywear also bolstered December

sales".



Baltika's largest fashion brand Monton comprised 53% of December's retail sales,

amounting to 23 million EEK (1,5 m EUR). These figures represent an increase of

11% on the same 2003 period. Retail sales reached 10.4 million EEK (0,7 m EUR),

an increase of 35% on corresponding December 2003 sales.



Baltman's December turnover exhibited the sharpest growth, rising 40% on 2003 to

5.4 million EEK (0,3 m EUR). The combined sales growth of CHR/Evermen and Baltman

is due to the establishment of new branches and also as a result of greater sales

efficiency growth (sale/m2), relative to last year.



In December, the largest increases in sales were in Ukraine by 48%, followed by

42% in Latvia, and 21% in Lithuania.



December also saw the opening of a new Monton store in Moscow's Mega-2 Shopping

Centre and a new CHR/Evermen outlet in Akropolis Shopping Centre, Vilnius,

Lithuania. A Monton branch in St. Petersburg was closed at the end of the month.



As of the end of December, Baltika Group has 79 shops in its retail chain.



In December, wholesale turnover together with the subcontracting amounted to 6.95

million EEK (0,45 m EUR).





Ülle Järv

Financial Director

+372 6302 741